                                 CODE OF VIRGINIA

REGULATORY FLEXIBILITY FOR SMALL BUSINESSES; PERIODIC REVIEW OF REGULATIONS (§
2.2-4007.1)

A. As used in this section, &#8220;small business&#8221; means a business
entity, including its affiliates, that (i) is independently owned and operated
and (ii) employs fewer than 500 full-time employees or has gross annual sales of
less than $6 million.

B. In addition to the requirements of §§ 2.2-4007 through 2.2-4007.06, prior
to the adoption of any proposed regulation, the agency proposing a regulation
shall prepare a regulatory flexibility analysis in which the agency shall
consider utilizing alternative regulatory methods, consistent with health,
safety, environmental, and economic welfare, that will accomplish the objectives
of applicable law while minimizing the adverse impact on small businesses. The
agency shall consider, at a minimum, each of the following methods of reducing
the effects of the proposed regulation on small businesses:

   1. The establishment of less stringent compliance or reporting requirements;

   2. The establishment of less stringent schedules or deadlines for compliance
   or reporting requirements;

   3. The consolidation or simplification of compliance or reporting
   requirements;

   4. The establishment of performance standards for small businesses to replace
   design or operational standards required in the proposed regulation; and

   5. The exemption of small businesses from all or any part of the requirements
   contained in the proposed regulation.

C. Prior to the adoption of any proposed regulation that may have an adverse
effect on small businesses, each agency shall notify the Joint Commission on
Administrative Rules, through the Virginia Regulatory Town Hall, of its intent
to adopt the proposed regulation. The Joint Commission on Administrative Rules
shall advise and assist agencies in complying with the provisions of this
section.

D. In addition to other requirements of &#xA7; 2.2-4017, all regulations shall
be reviewed every four years to determine whether they should be continued
without change or be amended or repealed, consistent with the stated objectives
of applicable law, to minimize the economic impact on small businesses in a
manner consistent with the stated objectives of applicable law. When a
regulation has undergone a comprehensive review as part of a regulatory action
that included the solicitation of public comment on the regulation, a periodic
review shall not be required until four years after the effective date of the
regulatory action.

E. The regulatory review required by this section shall include consideration
of:

   1. The continued need for the rule;

   2. The nature of complaints or comments received concerning the regulation
   from the public;

   3. The complexity of the regulation;

   4. The extent to which the regulation overlaps, duplicates, or conflicts with
   federal or state law or regulation; and

   5. The length of time since the regulation has been evaluated or the degree to
   which technology, economic conditions, or other factors have changed in the
   area affected by the regulation.

F. Prior to commencement of the regulatory review required by subsection D, the
agency shall publish a notice of the review in the Virginia Register of
Regulations and post the notice on the Virginia Regulatory Town Hall. The agency
shall provide a minimum of 21 days for public comment after publication of the
notice. No later than 120 days after close of the public comment period, the
agency shall publish a report of the findings of the regulatory review in the
Virginia Register of Regulations and post the report on the Virginia Regulatory
Town Hall.

HISTORY: 2005, cc. 619, 682; 2007, cc. 873, 916; 2011, cc. 241, 315.